Raul Delapena Setiawan
The Committee on Digital Economy and Media has formally signaled its appreciation for the Taiwan government’s ongoing commitment to high-level policy priorities, including the "Smart Nation 2.0" strategy, artificial intelligence (AI) integration, and the enhancement of cyber resilience. In a comprehensive set of recommendations aimed at the Executive Yuan and relevant ministries, the Committee emphasized that Taiwan’s future as a regional digital hub depends on the seamless interconnection of telecommunications infrastructure, a robust creative economy, and a modernized regulatory framework that avoids the pitfalls of legacy broadcasting models. As Taiwan navigates a period of heightened geopolitical sensitivity and rapid technological shifts, the Committee argues that maintaining an open, predictable, and innovation-friendly environment is no longer merely a domestic goal but a prerequisite for maintaining global competitiveness and cultural soft power.
Chronology of Digital Development and Regulatory Milestones
To understand the urgency of the Committee’s current recommendations, it is necessary to look at the timeline of Taiwan’s digital evolution over the last decade. In 2017, the government launched the "Forward-looking Infrastructure Development Program," a multi-billion dollar initiative designed to modernize the nation’s physical and digital foundations. This was followed by the successful 5G spectrum auction in 2020, which raised over NT$140 billion, signaling the telecommunications sector’s readiness to invest in high-speed connectivity.
In 2022, the establishment of the Ministry of Digital Affairs (MODA) marked a significant institutional shift, centralizing digital policy and cybersecurity under one roof. However, as the Forward-looking Infrastructure program approaches its expiration in 2025, the industry faces a critical juncture. The Committee notes that while the infrastructure for 5G is largely in place, the regulatory environment has not kept pace with the emergence of AI and the global shift toward Over-the-Top (OTT) streaming services. The upcoming expiration of key spectrum bands in 2030 and the rising costs of maintaining digital resilience in the face of geopolitical tensions have created a pressing need for a revised policy roadmap.
Strengthening the Telecommunications Backbone for the AI Era
The Committee’s primary suggestion focuses on the creation of a comprehensive telecommunications ecosystem to facilitate the development and application of artificial intelligence. Telecommunications operators are the silent engines of AI transformation, providing the high-bandwidth, low-latency data transmission required for machine learning and real-time data processing. However, the Committee points out that Taiwan’s domestic operators, while technologically advanced, lack the massive scale of international giants and face mounting operational pressures.
To mitigate these challenges, the Committee recommends continuous incentives to reduce regulatory burdens. A key concern is the physical security of Taiwan’s digital links. Submarine cables serve as the primary conduits for international connectivity, yet they remain vulnerable to both environmental hazards and geopolitical interference. With operating costs rising, the Committee urges the government to extend subsidies beyond 2025 to ensure that rural connectivity and mobile communication quality do not degrade as the "Forward-looking" program ends.
Furthermore, the transition to 6G is already on the horizon. Described as an "AI-native" network architecture, 6G is expected to utilize intelligent resource scheduling and automated maintenance to improve network resilience. The Committee recommends that the National Communications Commission (NCC) begin planning for the refarming and release of spectrum bands—specifically the 700 MHz, 900 MHz, and 1800 MHz bands—well ahead of their 2030 expiration. By aligning with international best practices and releasing new Sub-1 GHz frequency bands, Taiwan can lay the groundwork for 5G Standalone (SA) networks and future 6G capabilities.
Data Economy vs. Privacy: Finding a Flexible Equilibrium
A significant hurdle to Taiwan’s "Smart Nation 2.0" ambitions is the perceived rigidity of the Personal Data Protection Act. While the Committee acknowledges the vital importance of safeguarding citizen privacy, it warns that overly prescriptive measures can stifle the data economy. The development of AI requires vast datasets for training; without clear mechanisms for data de-identification and regulatory sandboxes, Taiwan risks falling behind regional competitors in AI application development.
The Committee recommends that the newly established Personal Data Protection Commission engage in meaningful stakeholder dialogue. The goal is to design a system that protects the public interest while allowing for the innovative use of data in sectors like telemedicine. By leveraging 5G technology, the Ministry of Health and Welfare could expand telemedicine coverage to geographically constrained areas, narrowing the gap in medical resource allocation. However, this requires a regulatory shift that allows for digital-first medical consultations and the secure, flexible handling of patient data.
Modernizing Media and the Creative Economy
The second major pillar of the Committee’s recommendations concerns the media and entertainment sectors. As consumer demand shifts toward personalized, on-demand content, the traditional distinction between satellite broadcasting and digital streaming is blurring. The Committee argues that applying legacy regulatory models to new digital services—or maintaining outdated requirements on existing cable and satellite platforms—will fail to address emerging market realities.
The Committee advocates for a "light-touch" regulatory approach by the NCC. This includes relaxing the rigid "five-year license renewal" system for channel operators, which often becomes a bureaucratic bottleneck rather than a tool for quality control. Instead, the Committee suggests a more flexible oversight mechanism that affords equal treatment to both traditional channel operators and modern content service providers.
The growth of the Over-the-Top (OTT) TV sector is highlighted as a primary driver of Taiwan’s cultural soft power. International streaming platforms are not just distributors; they are major investors in local Taiwanese productions, creating jobs and exporting Taiwanese culture to a global audience. The Committee warns against introducing prescriptive or quasi-mandatory requirements for OTT platforms, such as duplicative content classification systems. Most major VOD services already employ robust parental controls and content ratings; additional layers of regulation could deter international investment and weaken Taiwan’s position in the global content supply chain.
Copyright Enforcement and Collective Management Governance
The final section of the Committee’s report addresses the persistent challenge of online piracy and the complexities of music licensing. Effective copyright protection is described as essential for a healthy creative ecosystem. Despite improvements in the legal framework, criminal cases against piracy operations often take years to conclude, and the proceeds of illegal activities are rarely seized effectively.
The Committee highlights the rise of Illicit Streaming Devices (ISDs), which not only infringe on intellectual property but also pose significant cybersecurity risks to consumers via malware and data vulnerabilities. Drawing comparisons to Singapore’s proactive enforcement, the Committee recommends a more streamlined, "one-stop" administrative framework for site-blocking and enforcement. This would involve better coordination between ministries and the Taiwan Network Information Center to disable infringing domains in real-time.
Regarding music licensing, the Committee calls for greater transparency in how Collective Management Organizations (CMOs) set royalty rates. In the current system, rate-setting is often perceived as lacking user participation, leading to disputes that delay the launch of legitimate digital services. Taking cues from Japan and South Korea, the Committee suggests that Taiwan implement advance disclosure of rate-setting methodologies and allow for stakeholder input before new rates take effect. Such procedural safeguards would create a more predictable environment for both rightsholders and digital platforms.
Implications for Taiwan’s Global Standing
The implications of these recommendations extend far beyond the telecommunications and media sectors. In an era where "soft power" is increasingly synonymous with digital influence, Taiwan’s ability to produce and distribute high-quality content globally is a strategic asset. By modernizing its regulatory framework, Taiwan can solidify its role as a regional hub for content creation, attracting both capital and talent.
Furthermore, the focus on "digital resilience" reflects a growing awareness of Taiwan’s unique geopolitical position. A robust, AI-driven telecommunications network is not just an economic engine; it is a critical component of national security. The Committee’s call for a "forward-looking" policy approach suggests that the next five years will be a defining period for Taiwan’s digital identity.
Official responses from the government have generally been receptive, with various agencies acknowledging the need for regulatory agility. However, the challenge remains in the implementation. Transitioning from a legacy mindset of "control and command" to one of "flexible governance and partnership" requires significant legislative will. As the 2025 deadline for current infrastructure programs looms, the Committee’s roadmap provides a clear set of benchmarks for the government to measure its progress in building a resilient, innovative, and culturally vibrant digital nation.
Laily UPN
Jia Lissa
